PART 2Determinations in respect of an individual's financial resources

CHAPTER 3Calculation of income

Payments to be disregarded from calculation of disposable income or gross income24.

(1)

In calculating the disposable income or the gross income of the individual, the following payments must be disregarded—

(a)

disability living allowance paid under section 71 of the Social Security Contributions and Benefits Act 1992 M1 or section 71 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 M2;

(b)

attendance allowance paid under section 64 of the Social Security Contributions and Benefits Act 1992 or section 64 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

(c)

constant attendance allowance paid under section 104 of the Social Security Contributions and Benefits Act 1992 as an increase to a disablement pension or section 104 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

(d)

any payment made out of the social fund under the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

(e)

carer's allowance paid under section 70 of the Social Security Contributions and Benefits Act 1992 M3 or section 70 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 M4;

(f)

council tax benefit paid under section 131 of the Social Security Contributions and Benefits Act 1992 M5;

(g)

any direct payments made under F1sections 31 to 33 of the Care Act 2014 (direct payments) or under regulations made under F2section 49(3) of the Children and Families Act 2014 (personal budgets and direct payments), section 57(1) of the Health and Social Care Act 2001 M6 (direct payments), section 17A of the Children Act 1989 M7 (direct payments) F3, section 8(1) of the Carers and Direct Payments Act (Northern Ireland) 2002M8 F4or sections 50 to 53 of the Social Services and Well-being (Wales) Act 2014;

(h)

so much of any back to work bonus received under section 26 of the Jobseekers Act 1995 M9 as is by virtue of that section to be treated as payable by way of jobseeker's allowance;

(i)

severe disablement allowance paid under section 68 of the Social Security Contributions and Benefits Act 1992 M10 or section 68 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 M11;

(j)

exceptionally severe disablement allowance paid under the Personal Injuries (Civilians) Scheme 1983 M12;

(k)

any pensions paid under the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006 M13;

(l)

to the extent that it exceeds the relevant figure referred to in regulation 25(2)(b), any financial support paid under any agreement for the care of a foster child;

(m)

any payment made out of the Independent Living Fund 2006 F5or by or under the Welsh Independent Living Grant; F6...

(n)

any personal independence payment under Part 4 of the Welfare Reform Act 2012 M14 F7or Part 5 of the 2015 (Northern Ireland) Order F8;

(o)

any armed forces independence payment payable under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011;

F9(p)

payments made under Part 2 or 3 of the 2013 Regulations or Part 2 or 3 of the 2016 (Northern Ireland) Regulations; F10...

(q)

payments made under regulation 17 of the Universal Credit (Transitional Provisions) Regulations 2014 or regulation 17 of the Universal Credit (Transitional Provisions) Regulations (Northern Ireland) 2016;

F11(r)

any payment made under the Windrush Compensation Scheme; F12...

(s)

any Windrush connected payment.

F13(t)

any payment made by or under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Eileen Trust, MFET Limited, the Skipton Fund, F14the Caxton Foundation, a Relevant Infected Blood Support Scheme, the Infected Blood Interim Compensation Payment Scheme, the Infected Blood Further Interim Compensation Payment Scheme, the Infected Blood Compensation Scheme, or arrangements made by the Secretary of State or the Minister for the Cabinet Office under section 56(1) of the Victims and Prisoners Act 2024;

(u)

any payment made under the Vaccine Damage Payments Act 1979; F15...

(v)

any payment made by or under a trust established out of funds provided by the Secretary of State in respect of persons who suffered, or who are suffering, from variant Creutzfeldt-Jakob disease for the benefit of persons eligible for payments in accordance with its provisions F16;

(w)

a payment made under the Social Security (Additional Payments) Act 2022;

(x)

a payment made to an individual under section 13 or 15 of the Energy Prices Act 2022;

F17(y)

any payment for historical child abuse;

(z)

any Modern Slavery Victim Care Contract or equivalent payment;

z1

any payment of compensation for a miscarriage of justice made under section 133 of the Criminal Justice Act 1988.

F18(2)

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F19(3)

In calculating the disposable income or the gross income of the individual, the Director may F20, subject to paragraphs (3B) and (3C), disregard any payment that meets all of the following conditions—

(a)

the payment was made to an individual who is a victim of the fire at Grenfell Tower;

(b)

the payment was made to that individual because the individual is a victim of the fire at Grenfell Tower, and

(c)

the payment was not made directly to the individual by an individual known personally to the individual.

F21(3A)

In calculating the disposable income or the gross income of the individual, the Director may F22, subject to paragraphs (3B) and (3C), disregard the following payments—

(a)

any payment made by or under the National Emergencies Trust, the We Love Manchester Emergency Fund, or the London Emergencies Trust; F23...

(b)

any award of compensation paid under a Criminal Injuries Compensation Scheme;

F24(c)

any payment of compensation made under the Victims of Overseas Terrorism Compensation Scheme 2012.

F25(3B)

In determining whether to disregard any payment falling within paragraphs (3) and (3A)—

(a)

subject to sub-paragraph (b), the Director may disregard the whole of a payment where the following conditions are met—

(i)

the payment was for personal harm or was for a specified purpose; and

(ii)

the payment was not for a loss of income;

(b)

where a payment for personal harm or a specified purpose includes, in part, an amount for a loss of income—

(i)

where the Director is able to ascertain the amount of the part which is for a loss of income, the Director may disregard only the amount of the part which is not for a loss of income; or

(ii)

where the Director is not able to ascertain the amount of the part which is for a loss of income, the Director may disregard the whole of the payment.

(3C)

In determining whether to disregard any payment falling within paragraphs (3) and (3A), the Director may disregard the whole of a payment where there is a direct link between—

(a)

the loss or harm suffered by an individual for which the payment has been made; and

(b)

the civil legal service the individual has applied for or receives.

(3D)

In calculating the disposable income or the gross income of the individual—

(a)

subject to sub-paragraph (b), the Director may disregard the whole of a payment where the following conditions are met—

(i)

the payment was for personal harm or was for a specified purpose; and

(ii)

the payment was not for a loss of income;

(b)

where a payment for personal harm or a specified purpose includes, in part, an amount for a loss of income—

(i)

where the Director is able to ascertain the amount of the part which is for a loss of income, the Director may disregard only the amount of the part which is not for a loss of income; or

(ii)

where the Director is not able to ascertain the amount of the part which is for a loss of income, the Director may disregard the whole of the payment.

(3E)

In calculating the disposable income or the gross income of the individual, the Director may disregard the whole of a payment where there is a direct link between—

(a)

the loss or harm suffered by an individual for which the payment has been made; and

(b)

the civil legal service the individual has applied for or receives.

(3F)

The following definitions apply in relation to—

(a)

paragraphs (3B) and (3D)—

“loss of income” includes past and future loss of income;

“personal harm” means a non-pecuniary loss or harm caused to an individual;

“specified purpose” means an essential need of an individual and does not include a payment for financial-only loss;

(b)

paragraph (3D) and (3E)—

“payment”—

(a)

means any interim or final compensation, damages, insurance or ex gratia payment made to an individual (“A”) for a loss or harm suffered by A; and

(b)

does not include a payment made directly by an individual (“B”) who is known personally to A unless B is wholly or partly responsible (or alleged to be wholly or partly responsible) for the loss or harm suffered by A for which the payment was made,

and in the definition of “payment” mentioned in paragraph (3F)(b) “ex gratia” means a payment for which no legal liability exists.

(4)

In this regulation—

“fire at Grenfell Tower” means the fire at Grenfell Tower on 14th June 2017;

“Grenfell Tower” means Grenfell Tower, Grenfell Road, London, W11 1TG;

“victim of the fire at Grenfell Tower” means an individual who is any one or more of the following—

(a)

an individual living in Grenfell Tower on 14th June 2017;

(b)

an individual present in Grenfell Tower on 14th June 2017 at the time of the fire at Grenfell Tower;

(c)

an individual who was injured in, or as a result of, the fire at Grenfell Tower;

(d)

an individual living in a building in the immediate vicinity of Grenfell Tower that was evacuated as a result of the fire at Grenfell Tower;

(e)

a member of the family of an individual who died in the fire at Grenfell Tower or is missing in the fire at Grenfell Tower (and an individual is a member of the family of such an individual if the requirements of section 10(6) of the Act are met), or

(f)

a personal representative of an individual who died in the fire at Grenfell Tower.